This is an appeal from a decision dismissing an action for abuse of process due to the appellant's failure to immediately disclose a settlement agreement.
The appellant, Skymark Finance Corporation, entered into Minutes of Settlement with a key defendant, Lorraine Smith, which fundamentally altered the litigation dynamics by changing an adversarial relationship into a cooperative one.
Skymark failed to disclose this agreement for eight months, only doing so after being threatened with an abuse of process motion.
The motion judge stayed the action, and the Court of Appeal upheld this decision, reiterating the strict obligation for immediate disclosure of such agreements and confirming that the absence of prejudice does not excuse non-compliance.